China woes continue as benchmark plunges 5%

China woes continue as benchmark plunges 5%

Chinese stocks started the week with heavy losses, diving more than 5% Monday as other global markets also fell. U.S. stock futures were marginally higher. The Shanghai composite index plunged 5.3% to 3,016.70, after trading in China was halted twice last week when the benchmark plummeted 7%, sparking a global stock rout and pushing down oil prices.

Ahead of the start of regular trading in New York on Monday, Dow index stock futures were up about 0.2% and S&P 500 stock index futures added 0.3%. In Europe, Germany’s DAX index was flat and Britain’s FTSE 100 dropped 0.2%. U.S. stocks had their worst week in four years last week following the sell-off, sparked by concern China’s economy might be slowing.

Asian markets dropped as doubts about Beijing’s economic management concerned investors. Hong Kong’s Hang Seng index was 2.8% lower at 19,888.50. Markets in Tokyo were closed for a holiday Monday. Chinese stocks rebounded Friday but analysts suggested it was due to buying from a group of state entities.